Darwin investing

[bennos]

Has anyone bought an IP in Darwin recently?

Just wondering if it is still worth investing in Darwin (at the moment). I've come across a property there I'm interested in but have heard that Darwin is nearing the peak of capital growth so it may not be worthwhile for the time being.

Any comments?!

 

[want2bewealthy]

I live, work, play and invest in Darwin,
I have given much thought recently [in the past week or two] about buying another property, basically, Darwin is a bit stagment, but climbing slowly [like most other states] we havent yet reached peak, according to API, The town is really growing fast too with many projects commencing and already on the go, I really think Darwin is a good place to be investing for the future as it has alot to offer a fast growing population, when the big boys like united and Woolworths start building all over the place, you know somethings right, strong rental yields too.
Darwin has been expanding to its new outer suburbs for about 10 years now and its just going further and further out as we speak, people still want to live close to town, that where everythings at and the outer suburbs have basically caught up in price, so If you ask me, yes, its a really good time to be buying in Darwin, I know the good suburbs well, Parap was NT's top performer last financial year, showing extraordinary growth and there are some great buys still to be had there and Fannie Bay [next door, beach suburb], which is even more upper class

If you ever want any more info, or would like me to swing past a property on my way home or something [yes, Darwin is small;] then just let me know.

 

[phil]

With all respect to W2bw, I tend to disagree.

Let me first say that I do not own any property in Darwin, am certainly not an expert and I am only keeping a cursory glance at the market here. I still feel however, that Darwin is still too expensive for what's currently available. There are a lot of apartments being built close to the city, (although with lovely water views and close to a lively CBD) I still think that it will take some time for the market to absorb them, perhaps 6-12 months. The dry season is coming to an end and soon most tourists and back-packers will disappear along with many of the hospitality workers who tend to be seasonal, leading to more rental vacancies.

Look, I think Darwin is a great cosmopolitan place unlike anywhere else in the nation. We have great pubs and live music, a trendy cafe strip, and beautiful weather and water views all near a very relaxed city. We are close to Asia (Bali etc), and the food and culture reflects that. I think that any investment in Darwin would be beneficial in the near future, but I just can't see true value just yet.

Phil

 

[want2bewealthy]

Hi Phil, My PM tells me that in January, rental vacancy rates are at their lowest,
Yes, there are alot of new units being built in the city, soaking up the last of available land, the big developers are catching on.
I thought about purchasing one a few weeks ago but was discouraged by my broker who is very knowledgable about his own market, most people do not want to live in the city in a high rise, I know I certainly dont, The lenders are only willing to give 80% LVR to most of these as they see them as higher risk [under 50 square metres]

Speaking with my favourite real estate agent the other day, I asked him his thoughts on the Darwin market at this present time, he said that he thinks the market is flattening out [API says there is still more to come in the cycle before this happens] I think prices arent moving up in a hurry, but its certainly not a bad time to buy IMO, Darwin just keeps on getting bigger and bigger all the time,
I wouldnt be waiting to buy in Darwin, but thats just my opinion.
allthough, I spend alot of time researching the Darwin market.

If were talking about units, according to API, Darwin, Hobart, Perth and Adelaide are at around the same stage of the cycle at this present time, and thats taking into account Darwins city unit supply.

 

[bennos]

Thanks for the replies. I'll still not sure of what to do... you know how it is. The first IP is always the hardest.. new to everything and not very confident.

The other locations I'm also considering are the outer suburbs of Brissy.

Thanks again!

 

[Big Al]

Thanks for the replies. I'll still not sure of what to do... you know how it is. The first IP is always the hardest.. new to everything and not very confident.

The other locations I'm also considering are the outer suburbs of Brissy.

Thanks again!

Hi Bennos, as a new comer to this game I spent nearly 12 months researching before purchasing my first IP last week.
I'm not going to comment on where & why, but I will say if you have done your homework & have all the behind the scenes stuff in place then do your due diligence on a area or property & buy something ASAP!!!
The absolute perfect deal will never come
The sooner you get the first the better. Trust me it feels great once you do

Good luck!

 

[michaelg]

Darwin investing is an evolving system.

Sorry couldn't help myself when I read the thread title.

Regards
Michael G

 

[burty85]

I lived in darwin for about 14yrs now, i own my own home there and will be moving to qld next yr because of work comitments... I paid $309,000 in jan this yr, spent $10,000 on landscaping and garden shed had a Agent say he wouldnt sell it under $350,000 in Sep, all this in the space of 8 mths, I will be renting it out for approx $370 p/w, minding you this is a small 3bedroom, 1 bathroom house in the outer sub of Palmertson which is about 20km from the CBD, which also takes 30mins to in peak hour traffic... I say that Darwin is a great place to invest and i will be buying a unit in darwin next yr to add to my port folio....

 

[Ajax]

Sounds like I have the same type of property as burty85...basic 3 bedroom one bathroom cottage in Palmerston area (Gunn). Small land...316m2 (probably smaller land than burty85). Built in 2002 I think. Bought for 250k in August 2005. Worth 350k+ now. Rented for $330/week which is probably $20 under market rental. Have been pleased with results to date.

Points to note:-

(1) Managing agents fees in Darwin at 8.8% are expensive
(2) Council rates are expensive...about $1150/annum
(3) Trades are expensive
(4) Air-conditioners (mine has 3) don't last forever
(5) Bank valuers will always let you know how small your land is compared with others when you revalue/top up the loan. Next time I'd go for slightly larger land.
(6) Depreciation/Captial works allowance will be helpful at tax time



Ajax

 

[kero]

i rem a mate asking me about buying an IP in Moulden (suburb in Palmerston)... that was like 2 1/2 years ago (2004/5). Moulden was a suburb not many will look at due to crime rates (relativity to surrounding suburbs like the Chase & Fairway waters). The IP my mate looked at was $199 000. Might reuire a bit of reno. But recently, in one of the real estate mags (soory, can't rem which one), median price is $309 000!

and general fell for the market during 2004/5 was bearish!

I think you just have to DYOR by buying in the right location.

my two cents.

 

[twobobsworth]

Why not invest in sydney that is where you are from??

 

[burty85]

moulden is a lower class sub, but it still has some good areas with really good growth lately, my mates mum just sold her house in moulden (i dont know what price for tho, i think it was in the high 200s) and it was a over run place requring a lot of work, the house was crappy and the yard hadnt seen any attention in years.... If i hadnt of got my place a few months earlier i would have snapped that place up quick... I think darwin tho is overpriced at the moment, but it still wouldnt stop me from buying here again, darwin mite be small but is growing every yr (I think i read some were that it mite be one of the fastest growing citys, but dont quote me on that) (also dont mind my spelling lol)